UK has enough gas, says network after storage warning

The UK has enough gas supplies to meet winter demand, according to the UK's gas network operator. This comes after Centrica, the owner of British Gas, warned that gas storage levels were "worryingly low." Centrica, which owns the UK's largest gas storage facility, said that the UK had "less than a week's worth of gas in storage" due to unusually cold weather.

However, National Grid, which owns the UK's gas network, said that the UK's gas came from a "variety of sources" and that storage was "still healthy". Energy analysts have said that even if gas storage does drop to low levels, the UK can buy more gas from Europe and other countries. Centrica said that the UK's gas storage facilities were currently about half full. "A sharp drop in temperatures and high demand for gas from gas-fired power stations has led to UK winter gas storage falling to worryingly low levels," the company stated.

The company also added that "stubbornly high" gas prices were making it "more difficult to replenish storage." Parts of the UK are experiencing freezing weather, with some areas expecting very low overnight temperatures. Gas central heating is the most common way to heat homes. According to the UK's Office for National Statistics, about three-quarters of homes (74%) in England and Wales said it was their only source of central heating in 2023.

National Grid, which owns and operates nearly 5,000 miles of gas transmission system in the UK, said that "the overall picture for the UK's eight main gas storage sites remains good, with average levels just above 60%." The company added that it was "fully capable of meeting demand this winter." Craig Lowrey, principal consultant at Cornwall Insight, said that there are various gas pipelines running from Europe to the UK, and the UK also receives shipments of liquefied natural gas (LNG).

Given that household energy prices are currently capped until the end of March, any shortages are highly unlikely to affect consumers' bills, he said. If there was a short-term spike in wholesale prices, this could affect some business customers, he said. However, the UK's weather forecast is showing that the weather will become milder from Tuesday, meaning a spike is unlikely, he added. Wholesale prices are currently lower than they were at the start of the year. "There does not appear to be a real risk of gas shortages in the UK this winter," said Jack Sharples, a senior research fellow at the Oxford Institute for Energy Studies.

Dr Sharples said that in addition to LNG, the UK still gets some gas from the North Sea fields, and there are pipelines running from Norway, the Netherlands, and Belgium to the UK. The government has said that it is "confident that the UK has enough gas supply to get through the winter." Gas storage levels have come under pressure due to the cold weather conditions and the end of Russian gas pipeline supplies through Ukraine at the end of last month.

The UK has relatively small gas storage capacity, but it has increased compared to a few years ago. About half of the capacity it has is at Centrica's Rough facility, off the coast of East Yorkshire. The facility was closed in 2017 but was partially reopened in October 2022 after Russia's invasion of Ukraine triggered an energy crisis. There is also LNG storage at three terminals, as well as other smaller facilities around the country. If the UK needs more gas, traders can access stocks in the EU, as long as they pay the right price.

Centrica wants to invest £2 billion in the Rough facility so that it can be used to store more gas, and then hydrogen when the UK starts to burn less gas to meet green targets. It has been pushing the government to say that hydrogen will be part of the UK's future energy mix to justify the investment.